Florida Senate - 2009 COMMITTEE AMENDMENT
Bill No. SB 714
Barcode 292686
LEGISLATIVE ACTION
Senate . House
Comm: FAV .
03/10/2009 .
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The Committee on Banking and Insurance (Fasano) recommended the
following:
1 Senate Amendment (with directory and title amendments)
2
3 Delete lines 136 - 246
4 and insert:
5 of the foregoing which are located within the boundaries of the
6 unit and serve only such unit. Such property and any insurance
7 thereupon shall be the responsibility of the unit owner.
8 (g) A condominium unit owner’s policy shall conform to the
9 requirements of s. 627.714. Every hazard insurance policy issued
10 or renewed on or after January 1, 2009, to an individual unit
11 owner must contain a provision stating that the coverage
12 afforded by such policy is excess coverage over the amount
13 recoverable under any other policy covering the same property.
14 Such policies must include special assessment coverage of no
15 less than $2,000 per occurrence. An insurance policy issued to
16 an individual unit owner providing such coverage does not
17 provide rights of subrogation against the condominium
18 association operating the condominium in which such individual’s
19 unit is located.
20 1. All improvements or additions to the condominium
21 property that benefit fewer than all unit owners shall be
22 insured by the unit owner or owners having the use thereof, or
23 may be insured by the association at the cost and expense of the
24 unit owners having the use thereof.
25 2. The association shall require each owner to provide
26 evidence of a currently effective policy of hazard and liability
27 insurance upon request, but not more than once per year. Upon
28 the failure of an owner to provide a certificate of insurance
29 issued by an insurer approved to write such insurance in this
30 state within 30 days after the date on which a written request
31 is delivered, the association may purchase a policy of insurance
32 on behalf of an owner. The cost of such a policy, together with
33 reconstruction costs undertaken by the association but which are
34 the responsibility of the unit owner, may be collected in the
35 manner provided for the collection of assessments in s. 718.116.
36 1.3. All reconstruction work after a property casualty loss
37 shall be undertaken by the association except as otherwise
38 authorized in this section. A unit owner may undertake
39 reconstruction work on portions of the unit with the prior
40 written consent of the board of administration. However, such
41 work may be conditioned upon the approval of the repair methods,
42 the qualifications of the proposed contractor, or the contract
43 that is used for that purpose. A unit owner shall obtain all
44 required governmental permits and approvals prior to commencing
45 reconstruction.
46 2.4. Unit owners are responsible for the cost of
47 reconstruction of any portions of the condominium property for
48 which the unit owner is required to carry property casualty
49 insurance, and any such reconstruction work undertaken by the
50 association shall be chargeable to the unit owner and
51 enforceable as an assessment pursuant to s. 718.116. The
52 association must be an additional named insured and loss payee
53 on all casualty insurance policies issued to unit owners in the
54 condominium operated by the association.
55 3.5. A multicondominium association may elect, by a
56 majority vote of the collective members of the condominiums
57 operated by the association, to operate such condominiums as a
58 single condominium for purposes of insurance matters, including,
59 but not limited to, the purchase of the property hazard
60 insurance required by this section and the apportionment of
61 deductibles and damages in excess of coverage. The election to
62 aggregate the treatment of insurance premiums, deductibles, and
63 excess damages constitutes an amendment to the declaration of
64 all condominiums operated by the association, and the costs of
65 insurance shall be stated in the association budget. The
66 amendments shall be recorded as required by s. 718.110.
67 (j) Any portion of the condominium property required to be
68 insured by the association against property casualty loss
69 pursuant to paragraph (f) which is damaged by casualty shall be
70 reconstructed, repaired, or replaced as necessary by the
71 association as a common expense. All property hazard insurance
72 deductibles, uninsured losses, and other damages in excess of
73 property hazard insurance coverage under the property hazard
74 insurance policies maintained by the association are a common
75 expense of the condominium, except that:
76 1. A unit owner is responsible for the costs of repair or
77 replacement of any portion of the condominium property not paid
78 by insurance proceeds, if such damage is caused by intentional
79 conduct, negligence, or failure to comply with the terms of the
80 declaration or the rules of the association by a unit owner, the
81 members of his or her family, unit occupants, tenants, guests,
82 or invitees, without compromise of the subrogation rights of any
83 insurer as set forth in paragraph (g).
84 2. The provisions of subparagraph 1. regarding the
85 financial responsibility of a unit owner for the costs of
86 repairing or replacing other portions of the condominium
87 property also apply to the costs of repair or replacement of
88 personal property of other unit owners or the association, as
89 well as other property, whether real or personal, which the unit
90 owners are required to insure under paragraph (g).
91 3. To the extent the cost of repair or reconstruction for
92 which the unit owner is responsible under this paragraph is
93 reimbursed to the association by insurance proceeds, and, to the
94 extent the association has collected the cost of such repair or
95 reconstruction from the unit owner, the association shall
96 reimburse the unit owner without the waiver of any rights of
97 subrogation.
98 4. The association is not obligated to pay for repair or
99 reconstruction or repairs of property casualty losses as a
100 common expense if the property casualty losses were known or
101 should have been known to a unit owner and were not reported to
102 the association until after the insurance claim of the
103 association for that property casualty was settled or resolved
104 with finality, or denied on the basis that it was untimely
105 filed.
106 (n) The association is not obligated to pay for any
107 reconstruction or repair expenses due to property casualty loss
108 to any improvements installed by a current or former owner of
109 the unit or by the developer if the improvement benefits only
110 the unit for which it was installed and is not part of the
111 standard improvements installed by the developer on all units as
112 part of original construction, whether or not such improvement
113 is located within the unit. This paragraph does not relieve any
114 party of its obligations regarding recovery due under any
115 insurance implemented specifically for any such improvements.
116 Section 2. Section 627.714, Florida Statutes, is created to
117 read:
118 627.714 Residential condominium unit owner coverage; loss
119 assessment coverage required; excess coverage provision
120 required.—Coverage under a unit owner’s residential property
121 policy shall include property loss assessment coverage of at
122 least $2,000 per occurrence for an assessment made as a result
123 of a direct loss to the property owned by all members of the
124 association collectively when such loss is the type of loss
125 covered by the unit owner’s residential property insurance
126 policy, up to the limit of liability in effect at the time of
127 the assessment. Every individual unit owner’s residential
128 property policy must contain a provision stating that the
129 coverage afforded by such policy is excess coverage over the
130 amount recoverable under any other policy covering the same
131 property.
132
133 ====== D I R E C T O R Y C L A U S E A M E N D M E N T ======
134 And the directory clause is amended as follows:
135 Delete line 41
136 and insert:
137 Section 1. Paragraphs (a), (b), (c), (d), (f), (g), (j),
138 and (n)
139
140 ================= T I T L E A M E N D M E N T ================
141 And the title is amended as follows:
142 Delete lines 26 - 36
143 and insert:
144 requiring that condominium unit owner’s policies conform to
145 certain provisions of state law; deleting provisions relating to
146 certain hazard and casualty insurance policies; conforming
147 provisions to changes made by the act; creating s. 627.714,
148 F.S.; requiring that coverage under a unit owner’s policy for
149 certain assessments include at least a minimum amount of loss
150 assessment coverage; requiring that every property insurance
policy to an individual unit owner contain a
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